Biden Wipes Out $1.2 Billion In Student Debt

( – A White House press release touted the Biden administration canceling billions in student loan debt from over 150,000 borrowers. The press release touts a whopping total of $138 billion canceled for nearly 3.9 million people who had student loans over a dozen individual actions during Biden’s reign. Critics have claimed Biden is attempting to purchase votes from borrowers by effectively giving them free money.

Borrowers who are in the Saving on a Valuable Education (SAVE) plan and who borrowed less than $12,000 who have been repaying their loans for 10 years or more are eligible. There are some borrowers who took out more than $12,000 that could also have their debt forgiven, however.

The White House plan adjusted the deal such that each additional $1,000 borrowed could be forgiven if the borrower was in repayment for an additional year over the decade required. So someone who borrowed $13,000 could see their debt forgiven after 11 years of repayment.

Loans will be canceled beginning the week of March 2. The White House had adjusted its implementation to move it up six months in advance of its planned implementation which was originally scheduled for July. The intent of the program is to unburden young people of debt, claims the Biden administration.

The White House said that Republicans had attempted to block Biden’s student loan forgiveness plan “at every step along the way.” It did not include any critique that the forgive programs violate the law, as affirmed by the Supreme Court which ruled that the forgiveness programs were illegal back in June 2023.

A survey from from January suggested that millions of borrowers aren’t repaying their loans with the hope that they’ll be forgiven. Ten percent of those queried said that they were holding out on repayment and hoping for debt forgiveness from the feds. Loan repayment was paused during the pandemic period, but was restarted in October. Nearly a quarter of borrowers haven’t begun to repay their loans, however.

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